Ministers hope the controversial process, which involves pumping water, sand
and chemicals into the ground to extract gas trapped in rocks, could unlock a
major new source of gas for Britain and bring down household energy bills.

Chancellor George Osborne on Friday unveils details of tax breaks for the
shale gas industry, pledging the most generous tax regime in the world so that
Britain becomes “a leader of the shale gas revolution”.

But Water UK, which is demanding an urgent meeting with shale companies to
discuss its fears, warns: “Shale gas fracking could lead to contamination of the
water supply with methane gas and harmful chemicals if not carefully planned and
carried out.”

It suggests aquifers could be contaminated by fracking, by leaks from wells,
or by poor handling of chemicals or waste water on the surface.

It also warns that “the fracking process requires huge amounts of water,
which will inevitably put a strain on supplies in areas around extraction
sites”.

It adds: “The power of the drilling and fracturing process even risks
damaging existing water pipes, which could lead to leaks and shortages to
people’s homes and businesses.”

Shale gas explorers insist that fracking is safe but fear their attempts to
test Britain’s shale potential will be hamstrung unless they can win public
support.

Water UK says it is not “taking sides” over fracking but that water supplies
must be protected “at all costs”, with the utilities’ own reputations on the
line.

“If it goes ahead, we want to ensure corners are not cut and standards
compromised, leaving us all counting the cost for years to come,” Dr Jim
Marshall, the group’s policy and business adviser, said.

He called for “greater clarity from the shale gas industry on what its water
needs are really going to be and a true assessment of the impacts”.

The water industry has commissioned its own report on the potential impact
which shows the volumes needed presented a “real concern”.

This especially applies in the south east which is believed to have
significant shale potential but is prone to water shortages.

Water UK also questions how the water will be supplied to fracking sites and
suggests logistical challenges in treating waste water, which would be “toxic to
bacteria used in the treatment process” and could therefore only be treated at
“larger urban waste water treatment facilities”.